Replies to This Discussion

Permalink Reply by Dan Warfield on December 4, 2011 at 9:03pm

Shocked,

I commend you on your due diligence on my property...its public knowledge and its out there on the Belmont County website for all to see.  If I had your name, I could do it also not that I really care about what you own.

I really hope that you signed a good lease... I really do.  By the way, did you consider signing a three year lease instead of a five year lease?  That pyramid could very well be much smaller for you in your case if you did.  Maybe the company you signed with will let you out of your lease if they can't seem to get a deal/pool done in those three years?  Most car dealers go for the three year deals for a reason... because it easier for them to get you to sign and easier for them to re-sell the car at the end.  Well how about me in my lease...  a three year lease possibly makes them skip off the five year deals out there today and drill me first, that is if I have value in my property.  Heck, why not 24 months on a lease if they see real value in tying me up?  Now...think about it, that five plus five lease or that five plus three lease is looking sicker all the time isn't it?  They can hold you indefinitely and never drill on you.  Oh wait, maybe you will get paid for that extra five year extension?  When does that five year extension go into effect... it could be eternity because the leases are so full of outs for the company.  The one I considered earlier this year gave the companies the option to use "force majour" from DAY 1 of the lease.  So, imagine this.  You are day 1 into your "great" lease... the company invokes force majour because of coal minng issues within your area/property.  LEGALLY, that force majour can stay in place as long as the coal mining, quarrying, etc. is an issue, so lets say the force majour is in place ten (ten) years and then the mining is no longer an issue (by that time you've been LONGWALLED). So then, day two of your great 5+5 lease has now begun.  Great, here they come with the drilling rig and for some reason the mine decides to not close up the permitted area so the company can drill.  The State of Ohio gets involved and a year later, your still waiting on the drilling unit to show up.  So now you are on DAY 3 of your "great" lease... only five more years until you get that second signing bonus.  By this time, the natural gas price is through the roof at $10.00/mcf and land is leasing at 35K per acre, but, you are tied to the $2500.00 agreement for another 5 years and still no well or pooling.  Do you see where I am going with this... it goes on and on and on.  When you extend the term of the lease like that, you are giving them every opportunity to market your lease to the investor market, i.e. FLIPPING YOU. 

YES, I WANT THEM TO DRILL ON ME... I WANT THEM TO DRILL FORTY WELLS ON ONE PAD SITE AND SUCK THE UTICA, MARCELLUS, POINT PLEASANT AND ALL OTHER FORMATIONS DRY.  IT WILL BE ON MY TERMS THOUGH, NOT THEIRS.  If I can't make a good deal then so be it.

I stand by what I say about how many will get drilled in Belmont/Monroe County.  The hold-up for not getting you drilled upon is not the hold-outs, its the infrastructure and the demand for the product they produce.  THEY WANT TO TIE YOU UP NOW SO WHEN THE DAY DOES COME WHEN WE SEE THOSE OLD 2008 TEXAS PRICES OF 15K to 25K to 35K, THEY WON'T HAVE TO PAY THEM!!  Use your most common business principle.... buy low, sell high.  Do you actually think these companies are doing it any differently?  They want to tie us up as long as possible and pay us crumbs to keep us tied.  If you were in the oil and gas business, wouldn't you do the same thing?  Be honest with yourself now...

I say give the companies a very short window of opportunity, forget the high signing bonus, and lets get a guaranteed well drilled.  Put this in front of a landman here in southeastern Ohio and I think he will get in his car and go home.

Permalink Reply by Dave on December 4, 2011 at 9:51pm

Shocked,

Regarding your statement "The later you sign as a unit the farther down the schedule you are."  

This statement is only partially correct.  Signing a five year lease 6 months from now will delay drilling by at most 6 months, however the negotiated lease terms are by far the most important factor in assuring your property is put into production in a timely manner.

There are lease holders who signed 2 years ago and agreed to terms that may hold them for the next ten years without a producing well.   Many people have already signed leases with extension clauses that will be used to hold their property out of production for very little additional compensation.  I have seen some leases that are so bad that some landowners will never be drilled,  their property will forever be held in reserve.    

The most important thing mineral owners can do right now is be patient,  educate yourself on what is happening around you,  understand each and every word in whatever lease you are working with.   Work together as a group if possible.

A fair and equitable lease will almost assure commercial production on your property within five years.  If not, you will be compensated fairly.

Relax..... everything will work out just fine if you take your time and do things right up front.

Permalink Reply by valerie a white on December 9, 2011 at 9:29am

It's been over a week and Des hasn't sent out the leases like he promised- at least I haven't gotten any communication to the contrary.  Has anyone heard from him about when the leases will be ready?  He promised time to take them to our lawyers for review.  Does anyone have contact info for him?  I lost my postcard with the info.

Permalink Reply by Angela Smith on December 9, 2011 at 1:59pm

Telephone 330-328-5944  Fax 330-319-7363  E-mail  e*****************  If you get any

news, please share.

Permalink Reply by psychosid on December 16, 2011 at 8:25am

Anything from Des yet?  We're about 2.5 weeks from the November 30th meeting at Centerville.

Permalink Reply by Finnbear on December 16, 2011 at 8:49am

He sent an email update on Tuesday 12/13 to his group.

Permalink Reply by Amy on December 16, 2011 at 2:43pm

I'm new to the discussions, so would you recommend DES or any other group for a landowner in Smith township. I need all the help I can get.
Thanks so much

Permalink Reply by Mickgyver on December 23, 2011 at 7:56am

Sandy ,Smith Goshen Handles all of  Belmont County . PM me and Ill add as friend and pass on info if needed

Permalink Reply by Finnbear on December 23, 2011 at 3:11pm

Last update I received was Dec 13th from Des.

Permalink Reply by time will tell on December 25, 2011 at 3:41pm

Thanks SA for saying that , this is the kinda hate that has shut up a lot of people  not to mention on  Christmas Day  . 

Dark Heart .

Permalink Reply by Bob Landon on December 28, 2011 at 3:06pm

Did anyone see the ad in the Times Leader yesterday and today? There is a company trying to lease acreage in Flushing, Warren, Kirkwood, and the Western 1/3 of Union. They are offering $5,115.00/acre with a 20% royalty. WISH I had property in this area! For anyone lucky enough to have acreage in these areas which has not been leased, the number the paper gives is 1 (866) 358-0920.

I HOPE SOMEONE BENEFITS FROM THIS POST!!!

Permalink Reply by Bob Landon on December 28, 2011 at 3:49pm

The ad names the company as VP Ventures, LLC. I have no idea who they are or what they do. If I had acreage in this area I would call and get some information. This is the best deal that has come through these townships. From what I understand leasing has been slow in these areas for a little while now. 

And the hype Des created with the $5,100.00/acre and 20% royalty "offer," left a lot of people hanging. (no offense to this Des guy because I have never met him) 

The paper states that they WANT TO LEASE YOUR MINERALS, and at that price I'd let them lease mine.

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